Dollar Holds Near 18-Month High
The US dollar index hovered around 102.5 on Tuesday, remaining near its strongest level since April 2025 as investors awaited key inflation reports that could influence the Federal Reserve’s monetary policy outlook. The US consumer price index is due on Wednesday, followed by producer inflation data on Thursday. Markets are currently pricing in roughly an 80% probability that the Fed will leave interest rates unchanged this month, while assigning nearly an 88% chance of a rate hike in December. Investors will also assess existing home sales data and remarks from Fed officials Christopher Waller, Tom Barkin and Susan Collins on Tuesday. The dollar received additional support from safe-haven demand amid rising geopolitical tensions, as the US considers assisting Saudi Arabia in its fight against Iran-backed Houthi militants in Yemen, while the recently announced Russia-Ukraine “energy ceasefire” has already been violated.
5 on Tuesday, remaining near its strongest level since April 2025 as investors awaited key inflation reports that could influence the Federal Reserve’s monetary policy outlook. The US consumer price index is due on Wednesday, followed by producer inflation data on Thursday. Markets are currently pricing in roughly an 80% probability that the Fed will leave interest rates unchanged this month, while assigning nearly an 88% chance of a rate hike in December. Investors will also assess existing home sales data and remarks from Fed officials Christopher Waller, Tom Barkin and Susan Collins on Tuesday.
The dollar received additional support from safe-haven demand amid rising geopolitical tensions, as the US considers assisting Saudi Arabia in its fight against Iran-backed Houthi militants in Yemen, while the recently announced Russia-Ukraine “energy ceasefire” has already been violated.